Travis: When you refer to Sandstorm as a key holding, are you referring to the stock itself or the warrant? At the risk of asking personal advice, what are your thoughts on warrants in general?
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In this case I happen to hold both stock and warrants — and there’s actually more value in my warrant holdings now than in the equity. I like warrants for getting cheap long-term leverage on positions that I otherwise like a lot and also hold warrants on ROIC, for example, which I wrote about for the Irregulars a couple months ago (though those are a good lesson on volatility, too — the stock moving down 4% can drive the warrant down 25%).
Warrants are a way to get leverage on a stock if you don’t want to commit more capital to buying the stock, and if you find the right ones you can get a long time horizon of two, three or even six or eight years in some cases — so in times of pessimism, a warrant that’s that far out can sometimes get very, very cheap … I’ve been meaning to take another look at some of the TARP warrants too (WFC-WT, BAC-WT, AIG-WT etc.) but when I’ve checked in the past they’ve been just a bit more expensive than I like.
I wrote about warrants more generally in a note to the Irregulars a couple months ago here.
Well, the “Mainz Income Stream” pitch about gold and silver royalty/streaming companies is out in yet another updated variation, getting lots of questions on that. Stocks are still the same as last time around, Sandstorm Gold, Royal Gold, Franco-Nevada and Silver Wheaton, my last piece on this is here.